My FFIV Jan. 18th 2014 short calls (part of the covered call) are expiring in a few days. It’s deep ITM now. I see 2 ways to roll this up.
1. Credit spread of $80 (1/18/14) to $85 (7/19/14): net credit of >$1/sh. 24.7% x 2 = 49%/yr.
2. Credit spread of $80 (1/18/14) to $90 (1/19/15): net credit of >$2/sh. ROI: 49%/yr.
The ROI is very similar, however, the 1st choice is much safer (with a deeper ITM call).
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Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
